Solana is attempting a new increase in the $92 region. If SOL price overcomes the $100 and $104 resistance levels, it could gain bullish momentum.
- SOL price started a new decline from the $106 resistance against the US dollar.
- The price is currently trading above $92 and the 100 simple moving average (4-hours).
- A break occurred below the main bullish trendline supporting $100 on the 4-hours chart of the SOL/USD pair (data source from Kraken).
- In case of a break above the $100 and $104 levels, the pair may begin a further rise.
Solana price faces major test
Solana price began a new downward trend after struggling, like Bitcoin, to break out of the $43,800 to $106 level. There was a clear move below the $102 and $100 support levels.
Moreover, a break occurred below the main bullish trendline supporting $100 on the 4-hours chart of the SOL/USD pair. However, the bulls remained active near the $92 level and the 100 simple moving average (4-hours). The current price is attempting a new rise above the $95 level.
The price retested the $100 area and the 50% Fib retracement level of the downside move from the $106.41 swing high to the $92.95 low. SOL is currently trading above $95 and the 100 simple moving average (4-hours).
Source: SOLUSD on TradingView.com
Immediate resistance is near the $100 level. The next major resistance is near the $104 level or the 76.4% Fib retracement level for a downside move from the $106.41 swing high to the $92.95 low. A successful close above the $104 resistance could set the pace for another big rally. The next major resistance is near $112. Any more profits could push the price down to the $120 level.
Another decline in SOL?
If SOL fails to bounce above the $100 resistance, it could begin another downtrend. Initial support for the downside is near the $92 level and the 100 simple moving average (4-hours).
The first major support is near the $90 level, below which the price may test $85. If the price closes below the $85 support, the price may decline towards the $78 support in the near term.
technical indicators
4-Hour MACD – The MACD for SOL/USD is pacing in bullish territory.
4-Hour RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Key support levels – $92 and $92.
Key resistance levels – $100, $104, $112.
Disclaimer: This article is provided for educational purposes only. This does not represent NewsBTC’s opinion on whether to buy, sell or hold any investment, and of course investing carries risks. We recommend that you do your own research before making any investment decisions. Your use of the information provided on this website is entirely at your own risk.